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GC Asia
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Lenders old and new scramble for 'digital first' in era of Covid-19
The capital markets have been working to transition operations to a digital format for years, but bank incumbents have been reluctant to make a wholesale shift, largely because there was no urgent need to do so. Coronavirus has changed that, and banks are accelerating plans to update legacy systems, muscling in on territory once held firmly by fintechs.
21 May 2020 -
Credit funds said to see opportunity in UK SME loan scheme
Credit hedge funds are looking to finance books of SME loans originated under the UK government’s Coronavirus Business Interruption Loan Scheme (CBILS), subscribing for the equity in private securitization vehicles backed by the loans. The government guarantees are likely to improve the financing terms on offer, boosting returns for funds that can access these assets — but there are still questions over the details of the scheme.
21 May 2020 -
BWIC volume highest since 2016 YTD
European securitization bids wanted in competition (BWIC) volume has already reached €4.6bn in 2020, the highest level since JP Morgan's research team began collecting BWIC data in 2016. The secondary market is rallying following an improved equity market and a reopened European primary.
20 May 2020 -
CNH prices equipment ABS, sees toughest period ahead
CNH Capital priced its first securitization of the year on Tuesday, one of the few equipment ABS sponsors to come to market during the Covid-19 outbreak. The company is forecasting the “most severe impact” in the second quarter, with some regions and product lines seeing a 40% decline in demand, CNH said.
19 May 2020 -
Mercedes prices Silver Arrow 11 in line with BMW market opener
Mercedes-Benz priced its Silver Arrow Compartment 11 ABS auto deal at 40bp for the senior notes, in line with a deal from BMW which reopened the European ABS market last week.
19 May 2020 -
EIB turns to securitization for green finance, SME relief
The European Investment Bank (EIB) has invested in a Portuguese RMBS collateralised by green assets as part of a wider ESG programme. The group has also revealed details of its significant risk transfer (SRT) programme designed to support SME loans during the lockdowns.
19 May 2020 -
Foreign banks throw weight behind Toyota’s Rmb4.5bn auto ABS
Toyota Motor Finance (China) Co is set to price a Rmb4.5bn ($633m) auto loan ABS next week, bringing to the market only its second deal in two and a half years. The 11-member underwriting group has eight foreign banks.
19 May 2020 -
BoE explores further measures to expand Covid support
The Bank of England is mulling ways to support businesses left out of Covid-19 support schemes, with a focus on sub-investment grade corporates and encouraging lending into the real economy. A securitization structure is being comtemplated via the setting up of an intermediary bank.
19 May 2020 -
TALF benefits for ABS have mostly run out, investors say
The Federal Reserve’s Term Asset Backed Securities Loan Facility succeeded in boosting investor confidence and providing a backstop to further spread widening, but sources say that key limitations in the scope of the programme, even with the most recent expansion last week, mean that the benefits have mostly already been felt.
18 May 2020 -
Geely jumps on the bandwagon for tightly priced ABS
Genius Auto Finance sealed a Rmb4bn ($563m) three tranche auto loan ABS on Thursday, piercing through a razor-thin 2% coupon level for the senior tranches.
15 May 2020
